South Indian Bank held its conference call on 13th January 2009 to discuss on the company’s performance for nine months ended December 2008.
Highlights
- In the third quarter ended Dec’08, South Indian Bank recorded growth of 58% to Rs 146.23 crore in its NII. Its operating profit grew by 47% to Rs 68.33 crore largely on account of rise in other income and healthy NII. With whopping 178% rise in provisions & contingencies the Net profit settled with growth of 33% to Rs 54.20 crore.
- Other income for the quarter ended Dec’08 increased by 14% to Rs 46.46 crore. Of which the fee and commission stands at Rs 8.77 crore (Rs 7.53 crore in corresponding previous quarter), profit on sale of assets Rs 15.15 crore (Rs 12.38 crore), profit on forex transaction Rs 6.59 crore (Rs 3.75 crore) and miscellaneous Rs 18 crore (Rs 17.26 crore).
- The staff cost for the quarter ended Dec’08 increased by 63% to Rs 64.09 crore largely due to Rs 17.50 crore provisions made for wage arrears.
- The total business of the bank increased by 15% to Rs 27825 crore with the deposits increasing by 16% to Rs 16439 crore and advances increasing by 14% to Rs 11386 crore.
- Out of the Rs 11386 crore advances almost Rs 10097 crore is secured and remaining Rs 1289 crore is unsecured. The break up of advance book is as follows – Rs 1561 to agriculture, Rs 1116 to SME, Rs 1596 crore to large corporate, Rs 1596 to housing and Rs 5500 to others. The bank targets a credit growth of Rs 12500 crore for FY09.
- The NIM improved to 3% as on Q3FY09 compared to 2.61% as on Q3FY08. Reprising advances and shedding of bulk deposits helped the bank to improve its NIM.
- The PLR of the bank stands at 16%.
- The yield on advances for the period stood at 11.48% (10.70% a year ago), cost of deposits stood at 7.15% (6.74% a year ago), cost of funds stood at 6.45% (6.05% a year ago) and yield on investments stood at 7.04% (6.46% a year ago).
- The Current and Savings account as proportion to total deposit, the CASA ratio stood at 25% as on Q3FY09 compared to 24% during Q3FY08. The savings deposit stood at Rs 3245 crore compared to Rs 789 crore in the corresponding previous period and the current deposit stood at Rs 783 crore compared to Rs 645 crore a year ago.
- The NRI deposits stood at Rs 3168 crore.
- The bank shed Rs 500 crore of bulk deposits during nine months ended Dec’08. The total bulk deposit portfolio stands at Rs 3000 crore as on Dec’08.
- The Capital adequacy ratio of the bank is as high as 14.62% against 14.92% in the corresponding previous period. The Tier I capital stood at 13.21% as on Dec’08.
- The Book value per share stands at Rs 115.5 compared to Rs 127.1 in the corresponding previous year.
- The NPA’s came down both in absolute and ratio terms. The Gross NPA declined by 17% to Rs 20758 crore and Net NPA declined by 10% to Rs 4275 crore during the period. However there was Rs 30 crore additions to NPA during the quarter.
- The Gross NPA ratio came down from 2.53% to 1.85% and that of Net NPA ratio came down from 0.49% to 0.39%. NPA came down largely due to good recovery. The recovery made for the nine months period stands at Rs 84 crore. The bank targets to recover Rs 135 crore by end of this fiscal.
- Investment book stood at Rs 4850 crore of which Rs 3900 crore is in SLR portfolio and remaining Rs 950 crore is in non SLR portfolio. Almost Rs 3800 crore is in HTM and remaining Rs 1050 crore is in AFS. The duration of AFS is 0.55 years.
- The bank added 3 branches during the quarter Dec’08 taking the total to 523 branches. It has 40 more branch license in hand and plans to open 7 more branches by end of Mar’08 while, the remaining 33 branches will be opened by end of Sep’09. The bank is also looking at pan India presence hence will be opening more than 10 branches in North India.